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Making Tax Digital - a summary

HMRC are looking to make UK tax interaction easier for tax payers, creating a digital based process that is more effective and efficient for businesses and themselves.

Starting April 2019 the new programme "Making Tax Digital for Business" (MTDfb) kicks off with a change to the VAT submission - Making Tax Digital for VAT.

From that date, for businesses that are VAT registered above the the threshold of £85,000, will have to keep digital records and submit VAT returns using compatible software. (for example Xero you can find many more here).

Other elements that make of the MTDfb, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest. It will be interesting to see how the battle for the software suppliers will develop. I would expect to see the user interfaces changing to become more user friendly, efficient and potentially a bit of a price war. With an HRMC policy committing every business to use digital platforms the potential growth for the software companies just increased tremendously.

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